Tax regime forces entrepreneurs abroad

Date: 18th January 2010

British entrepreneurs, including small business owners, are increasingly moving their operations abroad in a bid to escape the tax environment of the UK, according to a new report.

Recent figures published by Investec Specialist Private Bank and the Entrepreneurs' Organisation (EO) have revealed that 10 per cent of UK entrepreneurs are to take their business abroad this year, while a further 17 per cent are considering the move.

The trend was highlighted after the report found that the regulatory environment of the UK, coupled with the current tax regime, means that only 17 per cent of British business owners believe the UK is an attractive option when launching a new enterprise.

Despite the negative outlook, figures from the report also revealed that the majority (88 per cent) of those who plan to remain in the UK feel their businesses will increase over the next 12 months.

Dr Sally Ernst, president of EO UK, said: "Although the findings show entrepreneurs are feeling more positive about the economic environment, we should not gloss over the fact that many feel that there are still significant challenges facing the business community in the UK, and that these could hamper the country's economic recovery."